Tommy Bahama’s Parent Sees Q1 Profits Top Guidance, Sales Dip 4 Percent

Oxford Industries, Inc., parent of the Tommy Bahama, Lilly Pulitzer and Johnny Was brands, reported lower earnings on an adjusted basis in the first quarter due to the impact of tariffs, but results topped guidance. Sales were in line with guidance, with gains at Tommy Bahama offsetting declines at Lilly Pulitzer and Johnny Was.

The sales outlook for the year was reduced due to weakness at Lilly Pulitzer and broader macroeconomic pressures.

Consolidated net sales in the first quarter of fiscal 2026 were $391 million, compared to $393 million in the first quarter of fiscal 2025, and compared to guidance between $385 million and $395 million. EPS on a GAAP basis was $1.00 compared to $1.70 in the first quarter of fiscal 2025. On an adjusted basis, EPS was $1.39 compared to $1.82 in the first quarter of fiscal 2025, topping guidance in the range of $1.20 and $1.30.

Both GAAP and adjusted EPS in the first quarter of fiscal 2026 included $11 million, or 55 cents per share, of incremental tariff costs compared to the first quarter of fiscal 2025.

Tom Chubb, chairman and CEO, commented, “We delivered net sales in line with our expectations, led by mid-single-digit positive comps at Tommy Bahama, and adjusted EPS above our guidance range, fueled by better-than-expected gross margins. Our overall performance also reflects softer-than-expected results at Lilly Pulitzer and a challenging environment marked by weak consumer sentiment and higher energy prices. At the same time, we made important progress during the first quarter on several strategic initiatives in our merchandising and marketing functions that we believe will enhance the operating performance of each of our brands over the long term.”

Chubb concluded, “As we look to the remainder of the year, we expect macroeconomic pressures to continue weighing on consumer sentiment, and we are allowing time for our corrective actions at Lilly Pulitzer to gain traction. In light of these factors and recent comparable sales trends, we are narrowing our full-year sales guidance range by lowering the top end of the range. We are also raising the low end of our EPS guidance range, as we expect the current lower tariff rates to continue for the remainder of the year, together with disciplined expense and inventory management, to offset the impact of the narrowed sales outlook on profitability.”

• Consolidated net sales were $391 million compared to $393 million in the first quarter of fiscal 2025.
• Full-price direct-to-consumer (DTC) sales decreased 1 percent to $247 million versus the first quarter of fiscal 2025.
• Full-price retail sales of $135 million were comparable to the prior-year period.
• E-commerce sales of $111 million were 2 percent lower than the prior-year period.
• Food and beverage sales of $38 million were 14 percent higher than the prior-year period, driven by new locations opened in fiscal 2025. Comparable store sales were flat.
• Outlet sales of $19 million were comparable to the prior-year period.
• Wholesale sales of $88 million were 5 percent lower than the first quarter of fiscal 2025.
• Gross margin was 62.3 percent, compared to 64.2 percent in the first quarter of fiscal 2025. The decreased gross margin was primarily due to (1) approximately $11 million of increased cost of goods sold from additional tariffs implemented in fiscal 2025 and (2) a $4 million higher LIFO accounting charge in the first quarter of fiscal 2026 compared to the first quarter of fiscal 2025. These decreases were partially offset by (1) updated sourcing and pricing strategies across its portfolio, (2) lower freight costs to customers and (3) a change in sales mix with a shift to a higher proportion of direct-to-consumer sales. On an adjusted basis, which excludes the impact of LIFO accounting, gross margin was 63.4 percent compared to 64.3 percent in the first quarter of fiscal 2025.
• SG&A was $211 million compared to $206 million, impacted primarily by new brick and mortar retail and food and beverage locations, increases in software and consulting costs and costs associated with the transition of its Lyons, Georgia distribution center operations. On an adjusted basis, SG&A was $209 million compared to $206 million in the prior-year period.
• Royalties and other operating income decreased from $7 million to $6 million in the first quarter of fiscal 2026, primarily reflecting lower Tommy Bahama royalty income due to reduced sales by licensing partners impacted by higher tariffs.
• Operating income on a GAAP basis was $22 million, or 5.7 percent of net sales, compared to $36 million, or 9.2 percent of net sales, in the first quarter of fiscal 2025. On an adjusted basis, operating income was $30 million, or 7.7 percent of net sales, compared to $39 million, or 9.8 percent of net sales, in the first quarter of fiscal 2025.
• Interest expense was $2 million, an increase from the prior year period, primarily due to a higher average outstanding debt balance during the first quarter of fiscal 2026 than the first quarter of fiscal 2025.